One of the world’s largest batteries that stores renewable energy will be built in Victoria and will help drive down the cost of power for the entire state.

The Victorian government announced on Thursday that the 300 megawatt Tesla lithium-ion battery would be installed near the Moorabool Terminal Station, near Geelong, and will be ready by Summer 2021-22.

During the announcement Energy, Environment and Climate Change Minister Lily D’Ambrosio said the battery will deliver $2 worth of value for every $1 invested.

Savings in wholesale energy, due to the storing of energy, will be passed onto Victorians, who will see cheaper bills as a result.

AusNet Services executive general manager of regulation and external affairs, Alistair Parker, said it was a “terrific idea”. AusNet will be responsible for connecting the battery into the electricity transmission network that they own and operate.

“The particularly smart feature of this battery is the way it enables more capacity around the network day in, day out,” he said.

It’s hoped the improved capacity will lessen the impact of power cuts during the peak summer period.

Want more? Here's a bit we love from Will & Woody – catch the boys weekdays from 4PM on KIIS101.1!